Well, statistics matter here and one thing insurance companies know about is statistics. If you brake hard once or twice, no biggie.
But, for sure, my prior is that someone who frequently brakes hard on the road is someone who gets themselves into jams they shouldn't have been in in the first place. Maybe it's a matter of failing to anticipate what's coming up ahead. Maybe it's a matter of where, when, and how often they drive.
Both indicate risk that, arguably, should be priced appropriately. Same for health behaviors.
Dropping you is a thing that happens when the expected value of your insurance payouts exceed the expected value of the premiums collected. With granular data from telematics, an insurer [*] could notify you to change your game long before they end up concluding, "Well, none of the data we have on this person differentiates them from the last 3 guys to cost us a million plus in settlements and claims, so sayonara"
[*] thinking of TFA here I mean a suitably regulated insurer, not one that is somehow sneakily accessing telematics data without any transparency
Insurance companies know stats. But I don’t think regulators effectively regulate use of these new statistics, which is essential to an business like car insurance.
But, for sure, my prior is that someone who frequently brakes hard on the road is someone who gets themselves into jams they shouldn't have been in in the first place. Maybe it's a matter of failing to anticipate what's coming up ahead. Maybe it's a matter of where, when, and how often they drive.
Both indicate risk that, arguably, should be priced appropriately. Same for health behaviors.
Dropping you is a thing that happens when the expected value of your insurance payouts exceed the expected value of the premiums collected. With granular data from telematics, an insurer [*] could notify you to change your game long before they end up concluding, "Well, none of the data we have on this person differentiates them from the last 3 guys to cost us a million plus in settlements and claims, so sayonara"
[*] thinking of TFA here I mean a suitably regulated insurer, not one that is somehow sneakily accessing telematics data without any transparency